Blockchain Business Value To Reach $2 Trillion By 2030 – IHS Markit Report
Blockchain business value is projected to increase from $2.5 billion in 2017 to $2 trillion in 2030, according to London-based global information provider IHS Markit.
In its “
Blockchain Vertical Opportunities Report,” IHS Markit examined the factors that are projected to hinder or drive growth of the blockchain market from 2017 to 2030. The report said that blockchain technology demonstrates especially significant potential across a number 0f vertical industry markets and application areas, including financial, supply chain and logistics, identity management, retail and e-commerce, and healthcare.
The report noted that early adopters of blockchain have mostly been companies in the financial services industry, which use it mainly in payments-related solutions. Because of the $73 trillion market capitalization of all the world’s stock markets, the report claims that even small cost savings and efficiency gains can lead to significant business value for companies and industries that decide to introduce the technology.
“There is barely a day that goes by without a fresh announcement about how banks and financial institutions are seeking to use blockchain technology to transform significant parts of their business,” said Don Tait, senior blockchain analyst at IHS Markit. “The financial vertical market will be the largest-value market to use blockchain.”
In the supply chain and logistics industry, IHS Markit projected that the introduction of blockchain technology will improve significantly. Tait said due to the complexity and lack of transparency of current supply chains, there is interest in how blockchains might transform the supply chain and logistics industry.
Digital identity is one of the oldest and hardest problems on the Internet. With the projected increase in the number of blockchain projects that are launched and become commercially deployed, the business value within the sector is projected to reach $200 billion by 2030.
In retail and e-commerce, the business value is projected to reach $164 billion by 2030. The initial uptake of blockchain in the sector will reportedly be led by trade promotions, decentralized marketplaces, payments, smart contracts, supply chain and other applications.
“Using blockchain within the retail and e-commerce sector can lead to a direct relationship opportunity with the customer, providing companies with greater understanding of their needs and behavior,” Tait said. “Blockchain and smart contracts can also provide the tools and framework to create a new generation of marketplaces where the supply and demand sides can engage in trusted
trading transactions, according to various business rules, without the need for a central brokerage entity.”
In healtcare, blockchain is projected to be adopted in a number of apllications, including medical data management, drug development, claim and billing management, and medical research. By 2030, the business value from blockchain in the sector is projected to reach $134 billion.
“Blockchain could be used to solve many issues that plague the healthcare industry today,” Tait said. “For example, it could be used to create a common database of health information across the gamut of electronic medical systems, spur higher security and more privacy, reduce administration time for doctors, and speed the sharing of research results that facilitate new drugs and treatment therapies.”